Page 243 - FR Integrated Workbook 2018-19

Consolidated statement of financial position

Example 9

Mid-year acquisition

On 1 May 20X7 Karl bought 60% of Susan. Extracts from the statements of
financial position for the two entities as at 30 November 20X7 show:

Karl Susan
$ $

Equity
Share capital 50,000 40,000

Retained earnings 189,000 69,000
Susan earned a profit of $9,000 in the year ended 30 November 20X7.

Required:

Calculate the value of Susan’s net assets at the date of acquisition.

Solution

$
Share capital 40,000

Retained earnings
SFP date 69,000

7
Less: post-acquisition $9,000 × / 12 (5,250)
––––––

63,750
––––––

Net assets at date of acquisition 103,750
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